English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

2006-07-20 09:21:46 · 5 answers · asked by millynnium 1 in Business & Finance Personal Finance

5 answers

Yes it is. I've been lending on there for a couple months now, and I've received all the payments and monies I've been due. So, so far, so good. And in response to the person who said it was a horrible idea, it's not. I think it's brilliant. Banks are so dependent on credit scores and the like that once you have a bad credit report you're pretty much scr*wed. At least here you can tell your side of the story, and people do help you out.

Will scammers eventually come, definitely. Does that mean it's a bad investment, not necessarily. It should only be one (and a small one at that) portion of a larger investment portfolio, that's diversified in stocks, bonds, international companies, real estate, etc.

2006-07-21 04:35:04 · answer #1 · answered by sjoschko 3 · 2 1

Prosper is absolutely legit. However, it is still what I would call experimental. It brings together people who want to borrow, with people who want to lend and earn interest.

The site limits the exposure to the lenders, by limiting how much you can lend to any one person. And the site also runs a credit check on the borrower and assigns them a credit grade based on that.

Also, the site recommends borrowers join groups. Some groups have really good reputations by doing a lot of checking on prospective borrowers, like asking for bank statements, pay stubs, etc. These groups also act like collection agencies should a borrower in the group become late on their payments.

I do like the idea of the borrower being able to tell their story, however I can see that being really abused.

So far it seems to be working well, however, I have no doubt the criminals and scam artists will see how to exploit it soon enough.

At this point, I would only recommend lending what you would risk losing if a borrower stiffed you.

2006-07-20 11:07:29 · answer #2 · answered by Uncle Pennybags 7 · 1 0

That looks like a terrible idea to me - lending money to an individual who may or may not repay you because you might get a slightly better return than at a bank is playing Russioan roulette with your finances.

There are some institutions so basic that if you erased everyone's memory of them they would quickly be reinvented. Banking is one of them.

I would no more lend money to someone through prosper.com than I would buy a surgery on eBay.

2006-07-20 09:29:13 · answer #3 · answered by frugernity 6 · 0 0

Been around for awhile.

Like an Ebay you have to do your homework and check it all out.

2006-07-20 09:24:18 · answer #4 · answered by Anonymous · 0 1

never heard of it before

2006-07-20 09:24:31 · answer #5 · answered by foundonfloor 2 · 0 1

fedest.com, questions and answers